In the recent Autumn budget, Chancellor, Phillip Hammond announced the abolition of stamp duty on properties under £300,000 for first-time buyers. This new legislation came into effect on 22nd November 2017 but what does it mean for buyers looking to buy their first house in North West London and what are the rules?
Aimed at helping more young people get on the housing ladder
With the cost of buying property in London, and the rest of the country, so high, many young people struggle to save the deposit and the fees associated with moving. With stamp duty fee on a £300k property being £5,000, the hope is that more first-time buyers will be able to afford to buy their own property. The intention is that it will act as an added incentive for young people to save a deposit.
Strictly for first-time buyers
If you are a first-time buyer looking to buy your first investment property in areas such as Stanmore or Borehamwood, before you buy a residence for yourself, then this will not apply to you. You need to be intending to live in the property. If you are buying a house with someone who has previously had an interest in, or owned, a property then stamp duty relief will not apply. If you are looking to buy property with a partner, friend or family members, or even as a group then all parties must be first time buyers.
How much relief can you get?
Current stamp duty land tax is charged on all properties of £125,000 or more at 2% up to £250,000. After this the rate increases to 5%. If you are a first-time buyer you will pay no stamp duty on property up to a value of £300k. Above this the normal rate of 5% will apply. The saving for first-time buyers will be as much as £5,000.
Apply for a refund
If you are a first-time buyer and have inadvertently paid the stamp duty since the Chancellor announced the change, the good news is that you can apply for a refund. Some buyers completed their purchase on the day of the budget, and over the following few days, not realising that the relief applied to them. To learn if you are entitled to a refund and how to claim it visit www.gov.uk where you will find further information about stamp duty.
How we can help
At Owl Search, we can help you to find your first property to buy within the areas that we cover areas e.g. Stanmore, Edgware, Harrow and Wembley. Our extensive experience and commitment to finding exactly what you want means that you can rely on us to help you search for your perfect first property.